When our class was asked to explain marketing to the instructor, Mike Reisenauer, without any prior information, I was surprised in what we as a class and individuals knew already. We are surrounded by marketing on a daily basis. Sometimes, it’s just normal to see all types of advertising around us that we don’t even realize that we are being exposed to them or promoting them. When I pulled out my Apple MacBook and iPhone 6 Plus, I was helping Apple advertise by just using my products.
Listed below are the three things that I took away from class on Friday, September 4th, 2015.
1. Image is everything in branding. When a brand does something to negatively impact their image, they could potentially lose a lot of money and have sponsors drop them. In class we talked about good images along with the bad ones. People can be brands too or they can stand for an image for a brand. For instance Michael Jordan stands for a lot of brands like Nike, Hanes and more. He also has his own brand, Jordans. A current infamous example would be Donal Trump. He used to stand for entrepreneurs and big businesses but after some of his political campaigns, his image is on a downward spiral. It’s like he is embracing that negative image.
I found a link that discusses the issue about repetitional risk .
It displays a quote from Warren Buffet. “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
I think that this quote just summarizes repetitional risk nicely in two sentences. Image is everything in brand marketing. This article also lists seven keys that they thought were the most important for repetitional risk.
Key #1: Get clear on what a brand is.
Key #2: Maintain control of the rebranding process.
Key #3: Understand that a brand has two owners: the marketer owns 50%; the customer owns 100%.
Key #4: Your logo, tagline, typography and design should tell a single-minded story.
Key #5: Never forget that a brand should always remain fluid.
Key #6: Never stop supporting and promoting your brand
Key #7: Be a Brand Champion
I thought that these seven key points where solid and interesting key points. I especially like key number three because it gives a good twist on brand reputation. The customers do own a bigger part of the brand because they are the ones with more control of it. Consumers can make or break a companies brand.
2. I found out about two important concepts in marketing, skimming and penetration. In the past, I have realized that these concepts exist but didn’t know the exact terminology of them. Skimming is when a company releases a product into the market at a high price, then drops the prices. Penetration is when a company releases a product into the market at a low price, then once they gain loyal following and establish their brand, their prices will gradually get more expensive.
Listed above is a link that I found about penetration and skimming definitions, advantages, disadvantages, examples, arguments and graphs representations. I thought the slide show information in this link was easy to read, understand and right to the point. It had great comparisons and examples that made me realize real life scenario usages of these marketing strategies.
3. Building brand loyalty is building consumer relationships. This also goes hand in hand with impulsive or bandwagon purchasing. For instance, Apple has a huge following. Their most recent release of the Apple Watch was sold out and on back order even though they charge a lot more than other brand of smart watches. They have a repeat of this sold out and waiting in line mentality when they release their newest products. The iPhone 6 was the same way. I can’t remember that last time, that happened to their competitor, Samsung.
The link above discusses instilling brand loyalty to younger generation consumers. I thought it was a really interesting concept and found a lot of his examples to be true. He discusses that whatever brand we are exposed of, we will tend to copy that image. His example was his long hair, which was influenced from bands like Pearl Jam. Those musicians were advertised and promoted through MTV when they used to be a bigger source of music. The article lists five key points on trying to instill brand loyalty to the younger generation.
1. Get on their level.
2. Be where they are at.
3. Do not assume.
4. Make really good stuff.
5. Do unto others.
To sum it up, a company must be able to understand the youth, know where they are getting their most exposure of marketing from and create valuable products. The biggest source of marketing would have to be smart phones. Since the explosion and availability of smart phones, I’d say it’s the number one way of marketing today. Smart phones are basically everyones mini computer.
In conclusion, brand image, skimming, penetration and brand loyalty were some of the most important concepts that I got out of the marketing introduction lecture. There were a lot more important concepts but I felt that these points were the most interesting to me. These points have given me a better understanding of what marketing is and how it operates.